The global market for adipic acid is expected to reach USD 7,240.8 million by 2020, according to a new study by Grand View Research, Inc. Growing demand for nylon resins and fiber from major end use industries such as automotive and electronics mainly in BRIC nations is expected to remain a key driving factor for the market over the next six years. However, volatility in raw material prices coupled with stringent regulations in Europe and North America on account of growing environmental concerns is expected to hinder the market growth over the forecast period.
Development of bio-based adipic acid emerged as a new driving force for the global Adipic Acid market. Bio-based adipic acid is an environment friendly solution, and provides cost advantage over its synthetic counterpart. Rennovia has been one of the pioneers for bio-based adipic acid development, using glucose as feedstock via its proprietary chemical catalytic process technology.
Nylon 6,6 both in its fiber and resin forms emerged as the leading application segment for adipic acid and accounted for over 83.3% of total market volume in 2013. Nylon 6,6 is widely used in fiber application including carpets, textiles, technical fibers and tire-cord. Growing demand for light weight high performance materials from automobile industry in order to reduce the overall weight of automobiles is expected to drive the demand for nylon resin and fiber. Nylon 6,6 was followed by polyurethane as the second largest application market for adipic acid in 2013. Polyurethane is also expected to be the fastest growing market for adipic acid at an estimated CAGR of 5.4% from 2014 to 2020.
The report “Adipic Acid Market Analysis and Segment Forecasts to 2020,” is available now to Grand View Research customers and can also be purchased directly at http://www.grandviewresearch.com/industry-analysis/adipic-acid-market
Further Key findings from the study suggest:
• The global adipic acid market volume was 2,610 kilo tons in 2012 and is expected to reach 3,747.2 kilo tons by 2020, growing at a CAGR of 4.7% from 2014 to 2020.
• Asia Pacific emerged as the leading market for adipic acid and accounted for 35% of total market volume in 2012. Along with being the largest market, Asia Pacific is also expected to be the fastest growing market for adipic acid at an estimated CAGR of 5.3% from 2014 to 2020. Growth of automobile industry in China and India is expected to drive the regional demand for adipic acid over the forecast period. Asia Pacific was followed by Europe which accounted for 27% of total market volume in 2012. The North American market for adipic acid is expected to reach USD 1.79 billion by 2020 at an estimated CAGR of 6.1% from 2014 to 2020.
• North America and Europe are highly regulated markets for adipic acid and are largely driven by the development of environmental friendly sustainable technologies.
• The market is highly concentrated, and the top four companies including INVISTA, Rhodia, Ascend Performance Materials and BASF accounted for over 60% of total adipic acid production in 2012. Key companies operating in the global market also include Shangdong Haili (Bohui), Liyoyang Petrochemical, Radici and Asahi Kasei among others.
For the purpose of this study, Grand View Research has segmented the global adipic acid market on the basis of application and region:
• Global Adipic Acid Application Outlook,
• Nylon 6,6 Fiber
• Nylon 6,6 Resin
• Adipate Esters
• Adipic Acid Regional Outlook,
• North America
• Asia Pacific
• Rest of the World
About Grand View Research
Grand View Research, Inc. is a market research and consulting company that provides off-the-shelf, customized research reports and consulting services. To help clients make informed business decisions, we offer market intelligence studies ensuring relevant and fact-based research across a range of industries, from technology to chemicals, materials and energy. With a deep-seated understanding of varied business environments, Grand View Research provides strategic objective insights.